Accurately Estimating ARV for Multifamily

[Tri Le]

Hi everyone,

I am looking to do a BRRRR on a small multifamily (ie triplex, duplex, 4plex). I am trying to develop a process for finding comps and estimating ARV.

If anyone could provide input on the methods/tools that they use to search for their comps and estimate their ARV for these types of properties, this would be greatly appreciated.

From what I can gather from the forums is that $/sqft, $/apartment, and $/room have an effect on ARV. I need help putting it all together.

Thank you!

Tri

[Greg Scully]

@Tri Le Since these are all residential properties the ARV is largely determined by comparable sales rather than an income based approach. A realtor could provide you with a CMA (comparative market analysis) or you can typically find sold properties on websites like Realtor.com. $ per sqft is a good metric assuming the properties are true comparables.